YEAR AT A GLANCE

Dear Reader,

Welcome to Partnership Benchmark 2021, the second edition of our study for Belgium. We had a fantastic reception to the first edition from both clients and service providers. Once again, we had participation from more than 70 of the top Belgian companies and government organizations, evaluated more than 170 contracts and had in-depth interviews with the main service providers.

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Here are some of the highlights:

  • Capgemini joins TCS and Accenture as a Leader within the Applications and Digital Square

  • Kyndryl joins Atos in the Leaders category for Infrastructure & Cloud Services

  • Wipro and Stefanini have a strengthened focus on Belgium and they make their debut on our squares

 

What is top of mind in terms of sourcing for IT services? Our interviews with clients and service providers indicate that the #1 challenge we all currently face is the war for talent. Triggered by Covid, 2021 saw both a spike in demand for technology and digital transformation, and a strong supply side disruption in IT talent. This spike in demand, combined with the scarcity of niche skills and the opportunity offered by work from home, is driving a huge war for talent. This period of The Great Resignation has seen attrition rates of up to 30%. Both clients and service providers are severely impacted. We expect this scenario to continue for the next 2-3 years. All organizations need to adapt how they hire and retain skills. Work from Anywhere will replace Work from Home as the new reality. Also, organizations should look to diversify their sourcing locations e.g. supplement offshore capabilities with nearshore. We discuss more about this topic in our article 'The Impact of Covid'.

The second hot topic for the CIO was how to organize and source for the journey to the cloud. This year, more than 90% of the enterprises stated that they are utilizing public cloud in some capacity. Several organizations are looking to migrate over 50% of their workloads onto the cloud. However, from devising the right cloud strategy, to managing the diverse service offerings, to deciding the extent of transformation - there are many complexities to be managed. We suggest a variable mix of internal cloud capabilities (Cloud CoE), with skills from Cloud Services Providers (CSP) and the right Managed Services Providers (MSP), depending upon the stage of your cloud journey. More on this in our article ‘Destination Cloud’.

Finally, Security is also top of mind for not just CIOs but also CEOs, and we start to see companies sourcing for security as a standalone service. We have profiled the market and present our assessment of the top players in Belgium.

Amidst this war for talent and a still evolving provider landscape (particularly for cloud and security services), the key to success will be your ability to continue to source the right talent and select the right partners. This Game of Talent will play out over the next few years.

Geert Hendrickx, Vikrant Sarin & Sunil Basavaiah

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